Distributor Tech Data, which bought rival SDG last year, is on target to generate 60% of its revenue from Europe.
CEO Bob Dutkowsky said: "Although we have seen some stabilisation in Q4, the weakness through the first nine months in certain countries did not always match up with our forecast.
"As a result of all of this, through Q3 our company did not execute at the levels of efficiency I would have expected. These are not excuses for our performance, but explain the reality of what the organisation faced during the year.
"However, Q3 and yet to be finalised Q4 results indicate the more current trajectory of our business, with sequential improvement in operating margins and mid-single digit year-over-year sales growth in both regions in local currency in Q4."